Trump raises the bar: 15-20% tariffs against Europe even in case of a deal

At least 15-20% even in the event of an agreement: US President Donald Trump has reportedly set a new red line in the confrontation with the European Union, according to the Financial Times. Tariffs below 30%, from 1 August, but still higher than the basic 10% tariff on most goods, which Europe had practically resigned itself to accept.

Today (Friday 18 July), EU Trade Commissioner Maros Sefcovic returned from Washington, where he met with Commerce Secretary Howard Lutnick and White House Representative Jamieson Greer. In Brussels, Sefcovic reported to the ambassadors of the Twenty-Seven.

Tariffs of 15-20%, even if an agreement is reached, would bring back the needles of confrontation with the EU and increase the pressure to activate retaliation mechanisms, with inevitable escalation. The Commission has prepared several lists of US-made products to be hit, but has so far stalled so as not to jeopardise the negotiations. On 6 August, tariffs on EUR 21 billion of imports on goods such as chicken and jeans could come into force. Brussels has also prepared a retaliation against 72 billion euros of imports (including Boeing planes and bourbon), should the negotiations fail, and is preparing a third mechanism that would hit digital services and online advertising revenues, with the anti-coercion tool.

According to the Financial Times, Trump rejected the EU's request to lower tariffs on cars, which would then remain at 25%. The US also imposed 50% tariffs on EU steel and aluminium.

And there's more. Trump is reportedly preparing sectoral tariffs to go along with those for economic areas and states, according to Bloomberg, along the lines of those on steel, aluminium, cars and components. The deadline could also be 1 August. The sectors under fire are copper, which could face a 50% tariff, timber, critical minerals and pharmaceuticals. He had previously mentioned tariffs on semiconductors.